The Federal Reserve Bank of New York works to promote sound and well-functioning financial systems and markets through its provision of industry and payment services, advancement of infrastructure reform in key markets and training and educational support to international institutions.

The Outreach and Education function engages, empowers and educates the Second District communities that the Bank serves, especially civic leaders, students, educators, small business owners, policymakers and the general public. It furthers the Bank's commitment to the region by listening to the communities we serve and leveraging our unique attributes to positively impact school and university programs, as well as analysis and research.

Board Announces Temporary Exemption to Limitations in Section 23A of Federal Reserve Act Will Expire on October 30, 2009

October 30, 2009

Circular No. 12150

The Federal Reserve Board has announced that a temporary exemption to the
limitations in section 23A of the Federal Reserve Act, instituted as part of
the response to the financial crisis, will expire as scheduled on October 30,
2009.

The
exemption, which was subject to various conditions to promote safety and soundness,
allowed all insured depository institutions to provide liquidity to their affiliates
for assets typically funded in the tri-party repo market. It was originally
approved on September 14, 2008, and was extended on January 30, 2009.

Since
the approval of the extension in January, the functioning of the tri-party
repo market has improved considerably.